Legal wrangling continues in Royal Oak civic center proposal

The developer of the proposed six-story office building, left, that is part of Royal Oak’s proposed civic center project has filed a lawsuit against a group of business owners who sued the city over the project. Meantime, the business owners are considering appealing a judge’s decision that dismissed their lawsuit against the city last month. Rendering from City of Royal Oak

Yet another lawsuit has been filed in connection with Royal Oak’s plan to create a $56 million civic center and sell a parking in front of city hall to a developer to build a six-story office tower there.

Central Park Development Group, led by Ron Boji in partnership with the Surnow Co., recently filed a lawsuit against a group of about a half dozen downtown Royal Oak business owners that unsuccessfully sued the city over the civic center project.

The business owners claimed the project would affect available parking and hurt their businesses. They further criticized the city giving CDPG $5.5 million as an incentive to build the office building.

Royal Oak is selling the parking lot property, estimated to be worth at least $900,000, to CPDG for $1 as an additional incentive.

Advertisement

In it’s lawsuit CPDG is seeking more than $25,000 in damages from each of the business owners and demanding a jury trial. The case is before Oakland County Circuit Judge Cheryl Matthews, the same judge who dismissed the owners’ suit against the city last month.

The business owners have indicated they are likely to appeal the dismissal. They filed a motion Tuesday for the judge to reconsider her decision, which gives them another 21 days in which to file a formal appeal of the decision in state appellate court.

“I think the mind set is we feel we are right and are most likely headed to a formal appeal,” said Don Nahat, one of the business owners.

CDPG claims in its suit that business owners improperly sued the city to “kill the transaction” with CPDG, according to the developer’s suit. “There was no merit to the (business owners’) suit and the delay and continuing threats to seek further delay ...(of) the transaction was and continues to be a malicious and damaging meritless action ...”

CDPG’s estimated cost for it’s office building has been about $38 million. The developers claim in their suit they have suffered damages, but do not specify them.

Nahat said CDPG’s suit against him and other business owners is misplaced.

“They can’t say were interfering with them because we sued the city,” he said. “Everyone of us is over 60 years old and our businesses are our life’s work and our businesses are being threatened.”

Royal Oak started out with the prospect of locating a new city hall in the office building CDPG proposes and partnering with the developers on the civic center project construction, but city officials later backed away from that arrangement.

The proposed civic center project includes building a new police station and city hall on part of the Farmers Market parking lot, building a six-level city parking deck to the north of CPDG’s office building and creating a downtown park where city hall now stands.